Sligro sees profits fall

Sligro sees profits fall

As previously announced by the foodservice company, Sligro Food Group in the Netherlands saw its profits fall sharply last year.

 

Cautious outlook

In the end, Sligro posted an operating profit of 44 million euros, down 16.2%. Net profit even fell by a quarter to 33 million euros. As an explanation, the company points to the sharp increase in costs (+28 million euros), partly caused by the acquisition of food service wholesale company De Kweker. IT costs also rose, partly due to the implementation of an ERP system. In Belgium, start-up losses after the opening of a new location in Antwerp weighed on the result.

 

Sligro already published its turnover figures at the beginning of this month. Although the company achieved a 2.1% increase in turnover in 2019 compared to 2018, turnover fell by 0.9% on an organic basis. Sligro expects limited overall market growth in the coming year. The company is taking into account slightly declining volumes and rising prices. "We are cautious about the overall expectations for the result and are not making any concrete predictions for the coming year", it says in a press release.